Correlation Between HIM International and Roo Hsing
Can any of the company-specific risk be diversified away by investing in both HIM International and Roo Hsing at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HIM International and Roo Hsing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HIM International Music and Roo Hsing Co, you can compare the effects of market volatilities on HIM International and Roo Hsing and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in HIM International with a short position of Roo Hsing. Check out your portfolio center. Please also check ongoing floating volatility patterns of HIM International and Roo Hsing.
Diversification Opportunities for HIM International and Roo Hsing
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HIM and Roo is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding HIM International Music and Roo Hsing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roo Hsing and HIM International is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on HIM International Music are associated (or correlated) with Roo Hsing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roo Hsing has no effect on the direction of HIM International i.e., HIM International and Roo Hsing go up and down completely randomly.
Pair Corralation between HIM International and Roo Hsing
Assuming the 90 days trading horizon HIM International Music is expected to generate 0.84 times more return on investment than Roo Hsing. However, HIM International Music is 1.19 times less risky than Roo Hsing. It trades about 0.06 of its potential returns per unit of risk. Roo Hsing Co is currently generating about 0.02 per unit of risk. If you would invest 7,617 in HIM International Music on September 5, 2024 and sell it today you would earn a total of 4,633 from holding HIM International Music or generate 60.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
HIM International Music vs. Roo Hsing Co
Performance |
| Timeline |
| HIM International Music |
| Roo Hsing |
HIM International and Roo Hsing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HIM International and Roo Hsing
The main advantage of trading using opposite HIM International and Roo Hsing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HIM International position performs unexpectedly, Roo Hsing can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Roo Hsing will offset losses from the drop in Roo Hsing's long position.| HIM International vs. Symtek Automation Asia | HIM International vs. WiseChip Semiconductor | HIM International vs. Novatek Microelectronics Corp | HIM International vs. Tanvex BioPharma |
| Roo Hsing vs. Tainan Spinning Co | Roo Hsing vs. Chia Her Industrial | Roo Hsing vs. WiseChip Semiconductor | Roo Hsing vs. Novatek Microelectronics Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |